Fractal Analytics delivered a strong Q3 FY26 with revenue of ₹854.4 crore (+21% YoY) and profit after tax crossing the ₹100 crore mark for the first time at ₹100.1 crore (+8.5% YoY). EPS stood at ₹5.77. Adjusted EBITDA grew faster at 24% YoY. Shares surged ~7–9% on March 6, 2026, following the results announcement—the company’s first-ever post-listing earnings disclosure.
About Fractal Analytics
Fractal Analytics Ltd (BSE: 544700 | NSE: FRACTAL) is a global enterprise AI and advanced analytics company founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, both IIM Ahmedabad graduates, in Mumbai, India. The company helps Fortune 500® organizations embed AI into critical business decisions across growth strategy, supply chain optimization, pricing, and customer experience.
With a workforce exceeding 5,000 professionals across North America, EMEA, and Asia-Pacific, Fractal operates dual headquarters in New York, USA and Mumbai, India. The company invests more than 5% of annual revenue in AI R&D, supporting foundational AI research, product development, and IP creation. Notable clients include Google, Wells Fargo, Citi, Costco, Nestlé, Mondelez, Mars, Philips, and Franklin Templeton.
Fractal went public via IPO in February 2026, with a price band of ₹857–₹900 per share and listing on BSE and NSE on February 16, 2026. As of March 6, 2026, the stock trades at ₹798 with a market capitalization of approximately ₹13,730 crore (~$1.6 billion). Key financial ratios include a P/E ratio of 65.7, zero dividend yield, ROE of 11.2%, and ROCE of 12.0%. The company reported consolidated revenue of INR 27.6 billion (~₹2,765 crore) for FY25 with a PAT of ~₹220 crore, representing a 30% CAGR over the past decade.
Top Financial Highlights
- Total Revenue: ₹854.4 crore (INR 8,544 million), up 21% YoY from ₹707.2 crore in Q3 FY25.
- Total Income: ₹856.1 crore, up 17.1% YoY from ₹730.9 crore.
- Net Income (PAT): ₹100.1 crore (INR 1,001 million), up 8.5% YoY from ₹92.2 crore.
- Net Profit (attributable to owners): ₹102.6 crore, up 10.56% YoY from ₹92.8 crore.
- Earnings Per Share (EPS): ₹5.77, up 4.3% YoY from ₹5.53.
- Gross Margin: 47.2%, an expansion of 0.2 percentage points YoY — described as “best-in-class”.
- Adjusted EBITDA: ₹152.1 crore (INR 1,521 million), up 24% YoY, outpacing revenue growth.
- Adjusted EBITDA Margin: 17.8%, an expansion of 0.4 percentage points YoY.
- Operating Cash Flow: INR 1,294 million (~₹129.4 crore).
- Healthcare & Life Sciences Segment: 20% of revenue, grew 78% YoY — the standout vertical.
- Banking & Financial Services Segment: 12% of revenue, grew 26% YoY.
- Net Revenue Retention (NRR): 114%, indicating strong client expansion.
- Net Promoter Score (NPS): 77, indicating high client satisfaction.
- $20M+ Revenue Clients: 6 (+2 YoY); $1M+ Revenue Clients: 58 (+8 YoY).
- Cash on Hand: ~₹1,102 crore (INR 11,020 million), bolstered by IPO proceeds.
Beat or Miss?
Since Fractal Analytics just listed in February 2026, this was the company’s first-ever post-listing earnings disclosure. Limited consensus analyst estimates were publicly available at the time of reporting. The table below compares reported metrics against available benchmarks:
| Metric | Reported (Q3 FY26) | Context / Analysis |
| Revenue | ₹854.4 crore (+21% YoY) | Strong beat on organic growth; management guides 25–30% CAGR is sustainable |
| Net Income (PAT) | ₹100.1 crore (+8.5% YoY) | First quarter crossing ₹100 crore milestone |
| EPS | ₹5.77 | Up 4.3% YoY from ₹5.53 |
| Gross Margin | 47.20% | Described as “best-in-class” in the industry; +0.2 pp YoY |
| Adj. EBITDA Margin | 17.80% | Margin expansion of 0.4 pp YoY; ~10 pp improvement over 3 years |
| NRR | 114% | Signals strong upsell/cross-sell within existing clients |
Prabhudas Lilladher initiated coverage on Fractal with a “Buy” rating and a target price of ₹1,260, implying approximately 49% upside from current levels. The overall market sentiment following Q3 results was distinctly bullish.
What Leadership Is Saying?
“We delivered a great quarter, improving across nearly every metric. Our best-in-class organic growth, gross margins, and high client retention reflect the strength of our enterprise AI capabilities and the trust our clients place in us. We have built a disciplined, high-performance organization focused on solving complex enterprise problems with AI. As adoption scales across industries, Fractal is well positioned to lead this transformation while creating sustained long-term value for our clients and shareholders.” – CEO — Srikanth Velamakanni, Group CEO & Executive Vice-Chairman
“This growth is sustainable and we expect to continue growing at this number or higher because we see tremendous acceleration with AI progress… Our gross margin went up with more and more engagement type moving to output-based contract structures. Beyond that, our productivity and how we use AI for a lot of our own internal work also led to reduction in costs. These are two big drivers which led to our Adjusted EBITDA improvement — there’s been almost more than 10 points of improvement in Adjusted EBITDA over the last three years, and we expect this operating leverage to continue.” Management Commentary on CNBC-TV18 (In lieu of a separate CFO quote from the press release)
Historical Performance
Fractal Analytics YoY
The table below compares Q3 FY26 results against Q3 FY25 (December 2024 quarter) and the sequential quarter Q2 FY26:
| Category | Q3 FY26 (Dec 2025) | Q3 FY25 (Dec 2024) | YoY Change (%) |
| Revenue from Operations | ₹854.4 crore | ₹707.2 crore | 20.80% |
| Total Income | ₹856.1 crore | ₹730.9 crore | +17.1% |
| Net Income (PAT) | ₹100.1 crore | ₹92.2 crore | 8.60% |
| Total Expenses | ₹772.8 crore | ₹652.8 crore | +18.4% |
| EPS | ₹5.77 | ₹5.53 | +4.3% |
| Gross Margin | 47.20% | 47.00% | +0.2 pp |
| Adj. EBITDA | ₹152.1 crore | ₹122.8 crore | +23.9% |
| Adj. EBITDA Margin | 17.80% | 17.40% | +0.4 pp |
Notable sequential trends: PAT surged 201.5% QoQ from ₹33.2 crore in Q2 FY26, as Q2 was depressed due to higher costs and one-off items. Revenue grew 4.5% QoQ from ₹819.4 crore.
Competitor Comparison
Q3 FY26 YoY Performance
The table below compares Fractal Analytics against key listed peers in the Indian analytics and design-technology services space:
Fractal Analytics vs. LatentView Analytics vs. Tata Elxsi
| Category | Fractal Q3 FY26 | Fractal Q3 FY25 | YoY Change |
| Revenue | ₹854.4 Cr | ₹707.2 Cr | +20.8% |
| Net Income | ₹100.1 Cr | ₹92.2 Cr | +8.6% |
| Total Expenses | ₹772.8 Cr | ₹652.8 Cr | +18.4% |
| Category | LatentView Analytics Q3 FY26 | LatentView Analytics Q3 FY25 | YoY Change |
| Revenue | ₹278.0 Cr | ₹228.0 Cr | 22.00% |
| Net Income | ₹50.1 Cr | ₹42.0 Cr | 18.60% |
| EBITDA Margin | 22.40% | ~21.8% | +~0.6 pp |
| Category | Tata Elxsi Q3 FY26 | Tata Elxsi Q3 FY25 | YoY Change |
| Revenue | ₹953.5 Cr | ₹939.2 Cr | 1.50% |
| Net Income | ₹108.9 Cr (₹179.1 Cr adj.) | ₹199.0 Cr | -45.2% (or -10.0% adj.) |
| EBITDA Margin | 23.30% | 26.30% | -3.0 pp |
Competitive Insights
Fractal Analytics significantly outpaced Tata Elxsi on revenue growth (+20.8% vs. +1.5%), demonstrating the strength of the enterprise AI demand cycle. LatentView Analytics posted comparable top-line growth of 22% YoY but operates at a much smaller revenue scale (₹278 crore vs. ₹854 crore). Both Fractal and LatentView benefit from the secular AI analytics tailwind, while Tata Elxsi faced headwinds from seasonal furloughs and a one-time labour code expense.
Mu Sigma, a privately held competitor, reportedly generated ~$145 million in 2024 revenue with approximately 3,500 employees, but does not disclose quarterly results. Tiger Analytics, another private peer, is estimated at ~$750 million in annual revenue.
Segment Revenue Breakdown
In Q3 FY26, Fractal demonstrated well-diversified revenue across industry verticals within its core Fractal.ai segment (INR 8,362 million, +21% YoY) and its product/incubation arm Fractal Alpha (INR 213 million, +29% YoY).
| Industry Vertical | Revenue Share (Q3 FY26) | YoY Growth |
| Consumer Packaged Goods & Retail (CPGR) | 36% | Stable |
| Technology, Media & Telecom (TMT) | 25% | Declined (client-side issues) |
| Healthcare & Life Sciences (HLS) | 20% | 78% |
| Banking, Financial Services & Insurance (BFSI) | 12% | 26% |
| Others | 7% | +48% |
The Healthcare & Life Sciences segment was the standout performer, powered by increasing AI adoption in clinical analytics, drug discovery, and patient outcomes. Management noted that the TMT segment saw a decline in Q3 due to issues on specific client accounts, not structural weakness.
AI Product Milestones
Fractal’s investments in proprietary AI products achieved notable global benchmarks during Q3:
- Vaidya.ai 2.0: Became the first AI model to achieve a score above 50 on OpenAI’s HealthBench (Hard), the toughest healthcare benchmark measuring advanced clinical reasoning. It outperformed ChatGPT-5, GPT-5.2, and Gemini Pro 3 on these benchmarks.
- PiEvolve: An evolutionary agentic engine designed for autonomous machine learning and scientific discovery, ranked among the top-performing agents on OpenAI’s MLE-Bench, outperforming agents from Google, Microsoft, and Meta.
These milestones validate Fractal’s R&D strategy and reinforce its credibility as a product-led AI company, not just a services firm.
How the Market Reacted?
Fractal Analytics shares surged approximately 7–9% on March 6, 2026, the day the Q3 results were announced—its first-ever earnings disclosure as a publicly listed company. The stock opened at ₹780 against a previous close of ₹759.15 and touched an intra-day high of ₹826 before settling at ₹798 on the NSE. Volume was elevated at 3.12 million shares traded on the NSE, reflecting strong institutional interest.
Since its listing at ₹876 on February 16, 2026 (below the IPO price of ₹900), the stock had been under pressure, declining ~3.8% through March 5. The strong Q3 results appear to have provided the first meaningful catalyst, with the post-earnings rally signaling market confidence in the company’s growth trajectory. Prabhudas Lilladher has a “Buy” rating with a target of ₹1,260, suggesting significant upside potential from current levels.
The overall sentiment is decidedly bullish, driven by 21% organic revenue growth, improving margins, a strong client retention profile (114% NRR), and credible AI product breakthroughs — all factors that support Fractal’s premium valuation at ~65.7x trailing P/E.
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